Session 2. A Paradigm Shift in Economy and Korea’s Strategy
Presentation 1. How Korea Can Capitalize on the Next Production Revolution
Robert D. Atkinson   President of ITIF

□ Korea’s faces two challenges and opportunities on the next production revolution.
 
□ Korea needs to spur innovation and entrepreneurship to develop the technologies.
 
○ Korea now risks being stuck in the middle between China and India as the new fast followers and the U.S. as the leaders.
 
○ It is required to encourage more risk taking, creativity, and entrepreneurship and develop a support system for “gazelle” entrepreneurs.
 
○ Korea also needs to diversify R&D, enable high growth gazelles and provide incentives for universities and labs to commercialize.
 
□ Through using the technologies, Korea needs to drive productivity.
 
○ Korea’s productivity growth has slowed in the recent decade, and its long path to close the productivity gap with the U.S. has stagnated.
 
○ Since small firms are vastly less productive than large firms, policies to help small firms boost productivity are required.
 
○ In order to enhance productivity, all sectors should utilize ICT, and the government should take an active role in achieving digital innovation in all industries.